TaxTMI 
TaxTMI 
Dear All,
What should be the service tax calculation car rentals if they don't charge tax on their invoice?Please also site a example.
Calculation for Cab Hiring Firm
13 Sep 2013 
1 Reply 
1359 Views Asked by
Service tax calculation must apply abatement under Notification no 26/2012 even if the invoice omits tax.
Service tax for car rental services must be calculated even if invoices do not charge tax, with the taxable value determined after applying the abatement under Notification no 26/2012, so the liability and computation require taking the prescribed abatement into account when deriving the taxable portion of receipts. (AI Summary)
Service tax for car rental services must be calculated even if invoices do not charge tax, with the taxable value determined after applying the abatement under Notification no 26/2012, so the liability and computation require taking the prescribed abatement into account when deriving the taxable portion of receipts. (AI Summary)